U.S. Customs to Halt Collection of IEEPA Tariffs After Supreme Court Ruling, Refund Questions Remain

BY MIRABEL ODETA

The U.S. Customs and Border Protection announced that it will stop collecting tariffs imposed under the International Emergency Economic Powers Act (IEEPA) beginning at 12:01 a.m. EST (0501 GMT) on Tuesday, more than three days after the Supreme Court of the United States ruled the duties unlawful.

In a notice sent to shippers through its Cargo Systems Messaging Service, the agency said it would deactivate all tariff codes tied to President Donald Trump’s previous IEEPA-related executive orders. The move formally suspends collection of the contested duties at U.S. ports of entry, aligning customs enforcement with the court’s decision.

The halt in IEEPA tariff collections comes as Trump simultaneously introduces a new 15% global tariff under a separate legal authority. The fresh measure is intended to replace the duties struck down by the Supreme Court last week, ensuring that a broad-based import levy remains in place despite the judicial setback. While the legal foundation has shifted, the administration’s overall strategy of raising trade barriers to generate revenue and pressure trading partners appears intact.

Customs officials did not explain why the agency continued to collect the IEEPA tariffs for several days after the Supreme Court’s ruling. The delay has raised questions among importers and trade attorneys about compliance timelines and the potential administrative burden of unwinding previously assessed duties.

Significantly, the agency’s notice did not address whether companies that paid tariffs under the now-invalidated authority will receive refunds. That omission leaves importers facing uncertainty over potentially substantial sums already remitted to the U.S. Treasury. Customs said it would provide further guidance to the trade community through additional CSMS messages as appropriate.

The suspension applies only to tariffs imposed under IEEPA and does not affect other trade measures enacted by the Trump administration. Duties levied under Section 232 of the Trade Expansion Act  typically justified on national security grounds  and Section 301 of the Trade Act of 1974, which targets unfair trade practices, remain in force.

The financial implications of the court’s ruling could be significant. Economists at the Penn Wharton Budget Model have estimated that more than $175 billion in U.S. Treasury revenue generated by IEEPA-based tariffs may now be subject to potential refunds. Their analysis suggests the tariffs were producing over $500 million per day in gross revenue before the ruling.

If refund claims move forward, the Treasury could face complex administrative and fiscal challenges, including verifying payments, processing reimbursements and adjusting budget projections. At the same time, the introduction of the new 15% global tariff may help offset lost revenue, though its durability could depend on further legal scrutiny and potential challenges.

For importers, logistics providers and global suppliers, the rapid shift in tariff authority underscores the volatility of U.S. trade policy. Businesses must now assess not only the cost implications of the new tariff regime but also the possibility of recovering funds paid under a framework deemed unlawful by the nation’s highest court.

As federal agencies work to implement the ruling and clarify next steps, trade flows and corporate planning remain clouded by legal uncertainty, shifting enforcement timelines and the broader debate over executive authority in setting U.S. trade policy.